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Fourth Quarter Activities Report

Document date:  Mon 24 Jul 2000
Published:  Mon 24 Jul 2000 11:32:02
Document No:  164839
Document part:  B
Market Flag:  Y
Classification:  Fourth Quarter Activities Report

TROY RESOURCES NL                             2000-07-24  ASX-SIGNAL-G

HOMEX - Melbourne                                                     



At Troy's Special General Meeting held on 20 July 2000, all three
Resolutions put before the Meeting were passed by shareholders. These
Resolutions related to the issue of Employee Share Options to Mr J L
C Jones and Mr K K Nilsson, both Directors of the Company, and to
alter the Constitution of Troy to insert Articles to enable the
Company to initiate a buy-back of Unmarketable Parcels of shares.

Following the adoption of these new Articles, the Company is
progressing documentation for the implementation of the Buy-Back of
Unmarketable Parcels. Letters to holders of Unmarketable Parcels
should be posted during August 2000.

(Note: An "Unmarketable Parcel" is defined as being a holding with a
market value of less than $500.)


(Troy Group 100%)


                                 JUNE 2000             12 MONTHS TO
                                 QUARTER               30 JUNE 2000
Tonnes Milled                    94,268                284,218
Head Grade (g/t)                 5.57                  5.48
Recovery (%)                     95.6                  95.43
Gold Produced (ozs)              16,139                47,803
Cash Cost (A$/oz)                A$148.61              A$156.93
"Cash Costs" are defined to include all expenditures directly
incurred on mining and milling, plus overheads and outgoings net of
movements in deferred mining costs and stockpiles, but exclude
Government gold royalty payments.

Production for the quarter was 16,139 ounces of gold at a cash cost
of A$148.61 per ounce.


Upgrading of the processing plant is ongoing, utilising second-hand
refurbished parts in order to increase plant through-put rates and
general performance at minimum costs.

Mill results to date have been excellent with mill availability above
budget with high recoveries and through-put rates up to and in excess
of 60 tonnes per hour.

Ore stockpiles at the mill are being held between 80,000-100,000
tonnes or around three months of milling.

General safety systems in the plant have been, or are in the process
of being upgraded and all areas of operation are under constant
review to improve safety and performance. The Company has
commissioned a number of audits investigating noise, environmental
and safety aspects of the plant to be undertaken by various
independent organisations and the Department of Minerals and Energy.


The highlight for the quarter has been the very good cost performance
with costs remaining below budget estimates.

The mining contractor Goldfields Contractors WA Pty Ltd continues to
perform well. The mining section had one "lost time injury" for the
quarter when a contractor fell from his machine, sustaining back

Approximately one-half of the strike length of the Bulchina deposit
has now been drilled out to a depth of 120 metres. The additional
information has been used to remodel that part of the deposit and was
used for a new optimisation and mine design.

The new design gives a remaining Ore Reserve as at 1 May 2000 of
1.22Mt @ 2.35g/t Au, classified as 0.62 Mt @ 2.43 g/t Au Proved and
0.60 Mt @ 2.27 g/t Au Probable Ore Reserve. This extends the mine
life by a further two years at present mill rates, with a strip ratio
of 2.3 : 1. This excludes ore stockpiles as at that date which were
120,971 tonnes @ 5.49g/t Au. This gives a total Reserve at that date
of 1.34Mt @ 2.63g/t Au for total contained gold of 113,500 ounces.

Further infill drilling to the south and at depth is planned for the
first half of the 2000/2001 financial year.

Orebody performance to date has exceeded forecast in terms of grade
as compared to the model. This is largely the result of a very
high-grade coarse gold section of the deposit, which is difficult to
model. This effect represents a possible upside in terms of grade